MANILA, Philippines - Employment and investments in the country are expected to surge after the signing of the Australia New Zealand Free trade Area (AANZFTA), the Department of Trade and Industry (DTI) said yesterday.
In a speech before Australia and New Zealand-based businessmen at the Peninsula Manila yesterday afternoon, Trade Secretary Jesli A. Lapus said a medium- sized specialist car parts manufacturer has already said they will increase their employment by 25 percent this year in order to take advantage of the AANZFTA exporting opportunities.
Likewise, the same firm said they would have to double their plant capacity in a couple of years in order to keep up.
Meanwhile, a small enterprise said that the AANZFTA tariff reduction in its coconut oil derivatives was increasing its sales to both Australia and New Zealand. Also, an Australian business process outsourcing (BPO) firm in the country said they will be expanding their presence here.
“AANZFTA is indeed a very good deal, and yet it can only be as good as we, the partner-builders of the agreement, implement it,” Lapus said. “The AANZFTA experience can help us in the effort to put better order into this sea of trade agreements, and thus draw the greatest possible benefit for them.”
Lapus said the Philippines has been able to effect on-time EIF and actual implementation through EO 851 which prescribes the Philippine tariff rate schedule for imports from the FTA partners (the nine other ASEAN Member States, and Australia and New Zealand). Similarly, Australia and New Zealand have extended their tariff concessions to the Philippines with effect from Jan. 1, 2010, and this has been influential in the improved export performance of Philippine manufacturers.